Retail olive oil prices in Spain are expected to rise due to a production decrease of 15.8 percent in Andalucia as a result of the droughts that affected the region this year.
The price for extra virgin olive oils at the origin in Spain went from €3.70 per kilogram to €3.84 in mid-October. The Sistema de Información de Precios en Origen (POOLred) registered a total of twenty-seven trades for 1,359 tons, with an average price of €3.72 during the 14-24 October period.
According to Poolred, bulk virgin extra olive oil commanded €3.76 per kilogram, virgin oil was at €3.68 and lampante was €3.60 per kilogram.
On the 19th of October, the Observatorio de Precios de la Federación Española de Industriales Fabricantes de Aceite de Oliva (Infaoliva) indicated commercial prices for extra virgin oils at €3.668 per kilogram, virgin oils at €3.619 per kilogram and lampante, in the Picual variety, at €3.539.
In Andalucía, olive oil production is estimated to be 884,900 tons for the current campaign, and in Jaén, the province, where output this season is down 28 percent, oil production is anticipated to be 360,000 tons.
It is predicted that there will be significant production decreases in almost all of the provinces in Andalucía for the 2017-2018 campaign. However, Sevilla, Málaga and Almería are the exceptions, showing an increase over the previous campaign.
Scarce rain was an issue in the spring as well as in the fall, and high temperatures in the summer also contributed to low harvest. However, according to the Ministry of Agriculture, estimates may vary depending on precipitation. Harvest production may increase if rain is present in the following days or decrease if the drought continues.
The low production numbers in Spain coincide with an estimated modest global increase of oil production. The International Olive Council calculates a 12-percent increase for a production total of 2.854 million tons.